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Author Topic: [BitcoinTalk Node Tutorial #3] Sparrow terminal / infinite Whirlpool mixes  (Read 465 times)
Jon_Hodl
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November 14, 2023, 04:15:45 PM
 #21

There's a huge problem with "endless free coinjoins" - Sybil attackers get endless free coinjoins as well.  As you might imagine, Chain analysis companies attacking the coinjoin pool disproportionately benefit from these free remixes because they have a lower time preference than real Bitcoiners that actually transact.
Chain analysis companies can sybil attack Wasabi mixes as well. All that is necessary is to control x number of inputs but I don't think they need even waste energy doing that since all of the same bad post-mix practices are just as possible when you use Wasabi.

On top of that, there's multiple instances of Wasabi mixes being de-anonymized by normal bitcoiners without access to industry level chain analysis tools. The recent hack on Rick who lost 25 bitcoin for storing his coins in a password manager has had help from the bitcoin community to track down some of his coins to Binance. https://twitter.com/RMessitt/status/1724135148055097364

I'm sure chain analysis can easily follow the rest with all of their tools.   

---
I am not spreading FUD, address clusters from common input ownership and peeling chains from leftover change ARE unique to Whirlpool coinjoins.  

You are spreading FUD about Wasabi's coinjoins because common input ownership is not revealed, and peeling chains are not produced (unless you are a whale with more coins than all the other participants), and there is no coin control necessary.
Address clusters and peeling chains are absolutely possible with Wasabi.
- If you ever try to spend an amount greater than a single UTXO, you need to merge inputs.
- If you spend less than a single UTXO, then change is generated which give birth to the beginning of a peeling chain.
- If you don't use this change UTXO, then you have a UTXO that sits idle forever and Wasabi has a "dust bug" or "tracable leftovers" as you've called it. 
 
Acting like your privacy cannot be compromised when mixing with Wasabi is blatantly false. They aren't magic. They may offer some privacy in certain instances but not as much as you seem to believe. The user of any wallet needs to be aware of basic privacy practices. Address clusters like merging inputs and peeling chains are unavoidable. That's the very nature of UTXOs. 

Whirlpool does not provide this sort of complete privacy for your entire funds like Wasabi does.  You always generate traceable leftovers:
"traceable leftovers" is a misnomer. Any UTXO can be "traced". You're conflating a bad privacy practice with a mixer "flaw". It's not an accurate comparison. There are plenty of users who don't merge their doxxic change. I know multiple people who use whirlpool and never merge doxxic change outputs and thus they never create address clusters or peeling chains. There's multiple ways to spend CoinJoin change without doxxing yourself: https://www.whatisbitcoin.com/privacy/spend-coinjoin-change

No, I'm not being disingenuous, people following the guide will automatically be deanonymized since they are not using Tor.  The worst possible outcome is that people get a false sense of security (and pay sats for it!)
Your concern about Tor is reasonable but OP is broadcasting though their own node which runs behind Tor so it's not an issue. It seems like you're just here to flex on the OP and tout Wasabi as better than Whirlpool.

Are you affiliated with Wasabi?

I'm here to chew bubblegum and stack sats....and I'm all out of bubblegum. - Learn More About Bitcoin: What Is Bitcoin?
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Kruw
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November 14, 2023, 10:28:34 PM
Last edit: November 15, 2023, 12:41:27 PM by Kruw
 #22

Chain analysis companies can sybil attack Wasabi mixes as well.

A blockchain analyst can't Sybil attack Wasabi's for free like they can with Whirlpool's coinjoins.  In Whirlpool, Sybil attack victims pay the mining fees for Sybil attackers.  In WabiSabi, Sybil attackers have to pay for their own mining fees.

All that is necessary is to control x number of inputs but I don't think they need even waste energy doing that since all of the same bad post-mix practices are just as possible when you use Wasabi.

The same post-mix practices are not "just as possible" when you use Wasabi because there is no peeling chain created by change and there is no common input ownership revealed.  

On top of that, there's multiple instances of Wasabi mixes being de-anonymized by normal bitcoiners without access to industry level chain analysis tools. The recent hack on Rick who lost 25 bitcoin for storing his coins in a password manager has had help from the bitcoin community to track down some of his coins to Binance. https://twitter.com/RMessitt/status/1724135148055097364

Where is the deanonymization?...  You are the SECOND person to use this example as "Wasabi being de-anonymized" when the only proof is a guy on Twitter saying "It looks like" and guessing the only coinjoin exit tx that's a payment without ruling out the coinjoin exit txs that are remixes: https://twitter.com/ErgoBTC/status/1723700744576971012

Another example of a Wasabi coinjoin completely failing: https://nitter.cz/ErgoBTC/status/1723700744576971012#m

25 stolen BTC were coinjoined in Wasabi (wait, I thought their blacklisting was supposed to prevent that? Roll Eyes), and has been easily traced to a variety of exchanges. Oh, and some of the stolen coins were split off as "toxic change" and combined with presumably KYCed coins from a Binance account: https://nitter.cz/coinableS/status/1723806321441710412#m. You know, the same thing Kruw has been telling us is impossible with Wasabi. Cheesy

I'm sure we'll be treated to the usual litany of excuses, but the bottom line is that Wasabi does not work.

No, as usual, you are lying, any everyone can verify it for themselves since Bitcoin is public. There is no "25 stolen BTC" in this coinjoin transaction, nor is there any "toxic change": https://mempool.space/tx/bcb3df324e6cbdb850ba778021e4be31f85d94e2c99e0b0223de9c029e12fd6a

I have no doubt law enforcement will be happy to freeze his coins based on their distaste for Bitcoin anyways, but this suspicion is not based on conclusive proof since the spent UTXO accused of belonging to the attacker was created alongside 2 identical UTXOs with the same value in the coinjoin, making it merely a guess.  I would make the same guess based on script analysis, timing analysis of peers, amount analysis, and destinations of premix and postmix funds, but this sort of "shooting in the dark" style approach of layering multiple non deterministic heuristics will eventually create collateral damage.

Address clusters and peeling chains are absolutely possible with Wasabi.
- If you ever try to spend an amount greater than a single UTXO, you need to merge inputs.

So what?  When you merge inputs in a coinjoin, common ownership isn't revealed.

- If you spend less than a single UTXO, then change is generated which give birth to the beginning of a peeling chain.

- If you don't use this change UTXO, then you have a UTXO that sits idle forever and Wasabi has a "dust bug" or "tracable leftovers" as you've called it.  

If you decide to generate change by making a payment outside of a coinjoin instead of inside of a coinjoin, you can just still just coinjoin the change instead of creating a peeling chain.  
 
Acting like your privacy cannot be compromised when mixing with Wasabi is blatantly false. They aren't magic. They may offer some privacy in certain instances but not as much as you seem to believe. The user of any wallet needs to be aware of basic privacy practices. Address clusters like merging inputs and peeling chains are unavoidable. That's the very nature of UTXOs.  

I admire your pessimism, but the WabiSabi coinjoin protocol is "magic" and actually did fully solve Bitcoin privacy because you are no longer dealing with the nature of UTXOs, you are dealing with the nature of ecash style cryptography: https://lists.linuxfoundation.org/pipermail/bitcoin-dev/2022-April/020202.html

With WabiSabi, you can even perform a Bitcoin payment so privately that the sender is not even aware of the address of the receiver: https://twitter.com/MrKukks/status/1619294492854747138

"traceable leftovers" is a misnomer. Any UTXO can be "traced". You're conflating a bad privacy practice with a mixer "flaw". It's not an accurate comparison. There are plenty of users who don't merge their doxxic change. I know multiple people who use whirlpool and never merge doxxic change outputs and thus they never create address clusters or peeling chains. There's multiple ways to spend CoinJoin change without doxxing yourself: https://www.whatisbitcoin.com/privacy/spend-coinjoin-change

WabiSabi coinjoins don't create any doxxic change at all, "traceable leftovers" are fully eliminated for anyone who isn't the biggest whale in the transaction.  That's why Whirlpool's coinjoins are flawed and WabiSabi coinjoins are not.

Your concern about Tor is reasonable but OP is broadcasting though their own node which runs behind Tor so it's not an issue. It seems like you're just here to flex on the OP and tout Wasabi as better than Whirlpool.

Are you affiliated with Wasabi?

Yes, I've contributed to Wasabi.  I contributed to Samourai as well, but my bug reports were deleted: https://bitcointalk.org/index.php?topic=5471645.0

You can use Bitcoin privately without giving up custody: https://mempool.space/tx/d465033214fd2309dcce5a90c45fcaa788aa4394ee36debe07aad8d8a37907d2
^ Participate in coinjoin transactions like this with Wasabi Wallet ^
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November 15, 2023, 09:52:11 AM
 #23

A blockchain analyst can't Sybil attack Wasabi's for free like they can with Whirlpool's coinjoins.  In Whirlpool, Sybil attack victims pay the mining fees for Sybil attackers.  In WabiSabi, Sybil attackers have to pay for their own mining fees.
You still have to pay to enter whirlpool and the anon set gets bigger over time.

The same post-mix practices are not "just as possible" when you use Wasabi because there is no peeling chain created by change and there is no common input ownership revealed.
Generating change outputs is inevitable when using Wasabi. There's no way that all participants have the same sized UTXOs. Eventually UTXOs get too small to coinjoin in wasabi and they become doxxic.

I have no doubt law enforcement will be happy to freeze his coins based anyways, but this suspicion is not based on conclusive proof since the spent UTXO accused of belonging to the attacker was created alongside 2 identical UTXOs with the same value in the coinjoin, making it merely a guess.
If chain analysis companies sybil attacked the Wasabi mix, then it's not just some guess. Additionally anyone else could could have sybil attacked the mix. UTXOs sizes are identical in any given whirlpool pool so I am not sure how Wasabi provides more privacy when only 2 other UTXOs are identical.

So what?  When you merge inputs in a coinjoin, common ownership isn't revealed.
Once you enter whirlpool, common ownership is not revealed.

If you decide to generate change by making a payment outside of a coinjoin instead of inside of a coinjoin, you can just still just coinjoin the change instead of creating a peeling chain.
This is a user decision. The same can be said of Whirlpool. If you generate change, you can CoinJoin in a smaller pool. Once a UTXO gets small enough, it becomes too small to CoinJoin.  


This thread has grown to become unmanageable for me. I am glad that you like Wasabi. I hope it is as private as you seem to think it is. I will revisit Wasabi and see if there is any value that I can get out of it.
 

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November 15, 2023, 11:49:16 AM
Last edit: November 15, 2023, 12:10:08 PM by Kruw
 #24

You still have to pay to enter whirlpool and the anon set gets bigger over time.

That's my point:  Attackers only have to pay for block space once to enter Whirlpool in order to participate in infinite Sybil attacks.  With WabiSabi, mining fees create an economic defense against Sybil attackers because they would have to incur a continuous cost to attack each round.

Generating change outputs is inevitable when using Wasabi.

Generating change outputs is not inevitable when using Wasabi, you can pay your destination directly within a coinjoin transaction and never receive change.

Eventually UTXOs get too small to coinjoin in wasabi and they become doxxic.

You can coinjoin any amount with the WabiSabi protocol, zkSNACKs' coordinator sets a 5000 sat minimum, but that's an arbitrary setting for DoS protection, there's no fundamental reason why a UTXO would get "too small to coinjoin".  There's even an extra tool in Wasabi to precisely eliminate change when spending outside of a coinjoin: https://twitter.com/wasabiwallet/status/1664718704628645890

There's no way that all participants have the same sized UTXOs.

I know it's hard to believe that all participants have the same sized UTXOs, but you can verify with your own eyes that they actually do:

Zoom out to see Wasabi's coinjoin of the week!  This behemoth transaction contains 23 BTC - https://mempool.space/tx/927a4d5f3e17faae611f623eaf06206b966b30ba1bacbec49d7ab35afa50dbca

Bitcoin is divisible. WabiSabi coinjoins make Bitcoin divisible privately.

Inputs: 370
Outputs: 340
Average input anonset: 4.2
Average output anonset: 10.63

Even if you have some non standard amount like 0.09698481 as an output like the coinjoin above does, there's no way to determine if it is a payment, if it is change, or which inputs created it.

If chain analysis companies sybil attacked the Wasabi mix, then it's not just some guess. Additionally anyone else could could have sybil attacked the mix.

Since we have no reason to believe that the round was Sybil attacked, then it's best not to assume it was deanonymized based on a guy from Twitter saying "it looks like".

UTXOs sizes are identical in any given whirlpool pool so I am not sure how Wasabi provides more privacy when only 2 other UTXOs are identical.

WabiSabi provides more privacy than Whirlpool because even UTXOs that do not have identical values to yours contribute to the crowd you are hiding in, not just the ones that have identical values.  There are 195 outputs containing a total of 44.125 BTC in the attacker's transaction, so it's even possible that the attacker with the 12.475 BTC input created zero out of the 3 outputs for 5.36870912 BTC because all of his coins were split into addresses containing smaller amounts.

This is why guessing one possible outcome without ruling out the others and calling it "deanonymization" is bad: Since there's no consequences to the accuser for accusing, why not make the accusation?

Once you enter whirlpool, common ownership is not revealed.

Common ownership is revealed from Whirlpool's premix transactions, I never claimed common ownership is revealed "once you enter Whirlpool".

This is a user decision. The same can be said of Whirlpool. If you generate change, you can CoinJoin in a smaller pool. Once a UTXO gets small enough, it becomes too small to CoinJoin.  

Users of WabiSabi are never faced with this decision because they can send their payments directly in a coinjoin so they never encounter change.  Even if you had change because you spent coins outside of a coinjoin, you can always coinjoin your change.

The same can not be said with Whirlpool because you always get stuck with traceable Bitcoin no matter what you do. You cannot send a payment directly in a Whirlpool coinjoin unless the recipient wants an amount of exactly 0.5, 0.05, 0.01, or 0.001 BTC.  You also can't coinjoin change below 0.001 BTC.

This thread has grown to become unmanageable for me. I am glad that you like Wasabi. I hope it is as private as you seem to think it is. I will revisit Wasabi and see if there is any value that I can get out of it.
 

Thanks for the responses, Wasabi being private by default finally puts an end to the need for these sorts of guides since all you have to do to transact anonymously is "Receive, wait, send".

You can use Bitcoin privately without giving up custody: https://mempool.space/tx/d465033214fd2309dcce5a90c45fcaa788aa4394ee36debe07aad8d8a37907d2
^ Participate in coinjoin transactions like this with Wasabi Wallet ^
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December 12, 2023, 05:08:27 PM
 #25

Hi all!

I have made this post before I decided to create my series of tutorials for my BitcoinTalk node.

However it is a great candidate for my 3rd tutorial, so I changed the title and I linked it with my previous tutorials.

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